Tech-Biz evolution: How technology is changing the way we do business

1/30/2016 in category "Education & Business"2237

Nothing stays the same

This applies to life and to business and finance. For years, financial institutions have maintained the same business models that guarantee them high profitability. With recent advances in technology, and in particular financial technology, there is pressure to move with the times to get crushed in this new wave of change.

But what exactly does this change look like? Here’s a look at ways in which recent technological advances have changes the way we do business.

Riding the line between high frustration and high profitability

Previous financial models have appealed to either the tech-savvy customers or those that are particular about the price. Advances in technology have allowed upcoming financial institutions to meet the needs of clients highly frustrated with these old financial models while making high profits.

For example, whereas many banks charged high fees for international money transfers and took several days to have it done, financial technology companies have found a way to make this process cheaper and faster and made themselves quite some money in the process.

Considering data as an asset

Data is one of the greatest assets for any business, especially a financial institution. How that data is used can determine the success or failure of that business. Innovators are making use of this data to make critical financial decisions. For instance, a lending institution can determine whether to approve your business loan or not based on your customer base on social media and your response to your clients.

Light on capital

Advances in technology have enabled growth in revenue for businesses without requiring more capital. By providing platforms where potential clients can interact and do business, you can grow your customer base and revenues with virtually no added capital. The clients pay a minimal fee to be on this platform or they can pay you a percentage if they manage to seal a deal. The same concept has been used for crowd funding platforms.

Automating processes

One of the advantages of technology is automation of previously manual processes. This has been applied in the financial industry such that manual processes that were only meant for an elite class are now accessible to more people. For instance, some companies are now offering asset allocation, investment advice, debt review and tax minimization strategies to customers online at a fraction of the cost of having a face-to-face conversation with a wealth management adviser.

As a result, there are more people getting in on this which has increased the customer base and earned the companies some revenue from subscription charges.

Collaborations

Innovations in the financial services sector are often regarded as disruptive to the way things have been. As a result collaboration between the ‘new way’ and the ‘old way’ may be considered sacrilegious to those on either extreme. However, there are ways in which collaboration can be conducted for the benefit of both parties.

Innovators can ride on the scale and infrastructure of established systems while they can gain from the innovators’ new perspective and strategic advantages. This ensured that both make some money without losing any customers in the process.

Image seems to be nice one. Title is creative on technology. I found many unique points in the article so it has forced to ping you for your great work. In the point called automating process you have explained an example about debt review which is more to do with how to get out of debt which is good. For any business you need investment, planning and many other points to go through you must always take care of that. Many thanks for sharing such effective and important article on technology and business. Thumps for the article. Should have given it many stars if I could.

Thank you for posting an article which is somewhat related to finance. I think it is one of the nice ways to tell people about the role of technology in business. Different business use different technology. As I think in today world for e.g. there are many apps coming to for getting people relief from debt, business question, report etc. which is good in some way dues to increase in the usage of mobile. Even a small children going to school wants a mobile to play games, listen songs and other things. That is a real world today.